With the stock market in rally mode, there are more pockets of strength than there have been in a while. Among the winners today are quantum computing stocks, as this powerful technology inches closer to making its way into the mainstream. Tempus AI (Nasdaq: TEM | TEM Price Prediction) and D-Wave Quantum (NYSE: QBTS) are up by double-digit percentages today while Rigetti Computing (Nasdaq: RGTI) is enjoying a nice pop amid signs AI and the quantum computing era are making their way further into the mainstream.
Tempus AI is soaring by 14.9% today as the stock flirts with the $50 level once again on lucrative pharma sector deals. TEM stock also received a ringing endorsement from a Wall Street analyst. D-Wave Quantum is advancing 11.6% today to approximately $7 per share for a market cap of just over $2 billion as its futuristic quantum computer advances to the installation phase. And Rigetti Computing is tacking on 5% after winning a pilot competition for quantum error correction capabilities.
Quantum Leaps
Tempus AI has inked expanded partnerships with the pharmaceutical sector, including a lucrative deal with AstraZeneca and Pathos, to build the oncology market’s go-to multi-modal foundation model for others to emulate. Tempus will receive a whopping $200 million in data licensing and model development fees for its role in the partnerships, bolstering its balance sheet.
Tempus AI and AstraZeneca first teamed up in 2021, and the latest deal represents an expansion of that contract, a sign that the integration of Tempus’ AI platform into the pharma giant’s oncology program is going well. Wall Street firm BTIG is bullish, initiating coverage on TEM stock with a “buy” rating and a $60 price target attached.
D-Wave Quantum is advancing 11.6% today to approximately $7 per share for a market cap of just over $2 billion. While the stock is still below its 52-week high of $11.95, it has several positive catalysts, not least the nearing of the installation of Alabama’s maiden on-site annealing quantum computer through a partnership with Davidson Technologies. The state of Alabama is high-profile for AI advancements in the U.S. and is expected to be a major contributor to quantum infrastructure leaps and bounds. After completing the assembly phase, the companies are now testing their systems before a key installation phase.
Rigetti Computing was selected to lead a $3.5 million consortium for further quantum error correction testing by Innovate UK’s Quantum Missions pilot program.
Will It Last?
It appears that quantum computing stocks have hit a stride, advancing their technology and being further accepted by other sectors of the economy, including pharmaceuticals. This rising quantum tide among a few key names is lifting all sector boats. Futuristic quantum technology, alongside its AI counterpart, continues to be accepted, as evidenced by more and more deals extending to industry stalwarts like Microsoft (Nasdaq: MSFT) and IBM (NYSE: IBM). Quantum stocks could continue to benefit. Just like AI, quantum computing stocks can be volatile, so investors might want to buckle up before jumping in.
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